You do no want to drive around in a “plain Jane” automobile that looks like every other car out on the road. What you want is a sporty car with fancy new parts replacing the factory ones that came on the vehicle when you bought it. Once you spend the money to customize your vehicle you need to make sure that your investment is covered by your auto insurance policy.
Senin, 24 Januari 2011
Selasa, 18 Januari 2011
Auto Insurance Rating Factors
Not all insurance companies have to the same rate increases at the same time. Insurance companies can do this because they use different risk assessors or variables for deciding about rate increases and when they are going to happen. This being true, it is still found that most companies typically use the same concept when factoring out rates.
If you ask an insurance agent how exactly the rates go up or why it might be hard for them to explain. This is because most insurance companies have devised their own mathematical algorithm. The company then feeds the insured’s information into a computer which checks through information and spits out an answer. This algorithm may be too complicated for the average insurance representative to discuss, but they should have an Underwriting Guideline along with any rating change guidelines to help explain. You should always be able to understand your rating factors.
CarInsurance.com understands all the rating factors of the companies they represent. When you get a quote, their computer system takes all the different rating factors and points, supplies them to the companies rating systems and comes up with a final number that is your premium.
The rating factors differ greatly, but there are many similarities in that they are all based upon historic facts (claims histories). New companies are starting to use new single rating factors like mileage or driving habits (range and driving styles determined by GPS systems that read speeds, range, and frequencies of stops). All companies will need to know about all members of the household who have a driver’s license and are likely to drive the car. Even if the other drivers have insurance, the insurance company will need to know about them. Most insurance companies still use these standard rating factors:
Territory
The place where you garage your vehicle and, therefore, do most of your driving is important in the rating process. Some states (like California) cannot use this as a rating factor because of laws. Experience shows that more losses and accidents happen in urban areas than in rural ones. Therefore, urban areas or areas with higher claim frequencies logically pay more for insurance.
Driving Record
Accidents, traffic violations and claims (comprehensive or liability claims). Some companies look at 3 years, some look at 5 years and others look at 7 years. Most only look at incidents incurred by any driver that is covered by the policy during the preceding three (3) years. Claim frequency measures how often claims occur within a group, per policy or persons reviewed in that group. Persons sharing characteristics with a group having high claims experience are charged more than if associated with a group having lower claim experience. The data used to show claim experience is gathered from the actual claims, which took place and an insurance company paid out claims.
Gender
Statistics show males have more incidents than females so companies distinguish this as a rating factor (grouping).
Age
There are a higher number of incidents that arise from some age groups than from other age groups. It is a bell curve with the highest occurrences of claims at ages between 16 and 25 than ages 26 to 73. Seventy-four and older drivers have more occurrences than those drivers aged 26 to 73 do.
Marital Status
Claim statistics indicate a lower rate of car insurance claims among married policyholders than those claims among single policyholders.
Prior Insurance Coverage
Your new insurance company wants to know how long you have had continuous insurance, how long you were with your prior carriers, what limits you had with the prior carrier and the reason you left or are leaving that carrier.
Credit History
Insurance companies use credit information because they know from statistical data that there is a direct correlation between consumer's credit history and expected claims that may occur. Since they have started using credit as an indicator, they have found no better indicator to help them predict risk.
Vehicle Use
Companies need to know how the vehicle is used on the road. How often is the vehicle driven, how far are you driving, where is it driven, and for what purpose do you drive? Is there any liability exposure to the company for use in a business function? All of these items are important because each of them exposes the company and the vehicle or drivers to become involved in an accident.
Coverage and limits
The limits or exposure, clearly affect the cost. The more coverage you purchase, the higher the premium will be.
Vehicle Make, Model, and Style
The type and value of the car you drive directly affects the premium you pay for physical damage coverage and some property damage (liability or uninsured motorist) coverages. Every make and/or model of cars has a history, so you are placed into a similar rating group for this item. If a car has more theft or vandalism history or high repair costs due to body construction, it will carry a higher premium.
To make sure that the insurance companies are rating people properly they must file their rates with each state’s insurance department. In this report, they must include how they determined their rates, which car insurance rating factors were used, and the base rates they will use for every location. Quite simply, an insurance rate considers all these factors and the insurance company assigns you a rating factor by which they multiply the base rate for each type of coverage. For example, a given insurance group may be priced at $200 per year for someone in a 35-40 year old age group, but if you are 16-21 your rating factor may be 1.5, you will be charged $300 ($200 X 1.5). This is simple approach, but quite simply each item above may have a different factor for each group and all of these factors are factored against the base rate to get your premium. All insurance companies use the same basic criteria in determining rates; some weigh the various factors differently and this is the complexity of rating factors and rating systems. The only way to get the best coverage for the least money is to shop with independent insurance agents like CarInsurance.com. Luckily, internet sites like CarInsurance.com make it easy to shop and compare rates of multiple companies at one site.
If you ask an insurance agent how exactly the rates go up or why it might be hard for them to explain. This is because most insurance companies have devised their own mathematical algorithm. The company then feeds the insured’s information into a computer which checks through information and spits out an answer. This algorithm may be too complicated for the average insurance representative to discuss, but they should have an Underwriting Guideline along with any rating change guidelines to help explain. You should always be able to understand your rating factors.
CarInsurance.com understands all the rating factors of the companies they represent. When you get a quote, their computer system takes all the different rating factors and points, supplies them to the companies rating systems and comes up with a final number that is your premium.
The rating factors differ greatly, but there are many similarities in that they are all based upon historic facts (claims histories). New companies are starting to use new single rating factors like mileage or driving habits (range and driving styles determined by GPS systems that read speeds, range, and frequencies of stops). All companies will need to know about all members of the household who have a driver’s license and are likely to drive the car. Even if the other drivers have insurance, the insurance company will need to know about them. Most insurance companies still use these standard rating factors:
Territory
The place where you garage your vehicle and, therefore, do most of your driving is important in the rating process. Some states (like California) cannot use this as a rating factor because of laws. Experience shows that more losses and accidents happen in urban areas than in rural ones. Therefore, urban areas or areas with higher claim frequencies logically pay more for insurance.
Driving Record
Accidents, traffic violations and claims (comprehensive or liability claims). Some companies look at 3 years, some look at 5 years and others look at 7 years. Most only look at incidents incurred by any driver that is covered by the policy during the preceding three (3) years. Claim frequency measures how often claims occur within a group, per policy or persons reviewed in that group. Persons sharing characteristics with a group having high claims experience are charged more than if associated with a group having lower claim experience. The data used to show claim experience is gathered from the actual claims, which took place and an insurance company paid out claims.
Gender
Statistics show males have more incidents than females so companies distinguish this as a rating factor (grouping).
Age
There are a higher number of incidents that arise from some age groups than from other age groups. It is a bell curve with the highest occurrences of claims at ages between 16 and 25 than ages 26 to 73. Seventy-four and older drivers have more occurrences than those drivers aged 26 to 73 do.
Marital Status
Claim statistics indicate a lower rate of car insurance claims among married policyholders than those claims among single policyholders.
Prior Insurance Coverage
Your new insurance company wants to know how long you have had continuous insurance, how long you were with your prior carriers, what limits you had with the prior carrier and the reason you left or are leaving that carrier.
Credit History
Insurance companies use credit information because they know from statistical data that there is a direct correlation between consumer's credit history and expected claims that may occur. Since they have started using credit as an indicator, they have found no better indicator to help them predict risk.
Vehicle Use
Companies need to know how the vehicle is used on the road. How often is the vehicle driven, how far are you driving, where is it driven, and for what purpose do you drive? Is there any liability exposure to the company for use in a business function? All of these items are important because each of them exposes the company and the vehicle or drivers to become involved in an accident.
Coverage and limits
The limits or exposure, clearly affect the cost. The more coverage you purchase, the higher the premium will be.
Vehicle Make, Model, and Style
The type and value of the car you drive directly affects the premium you pay for physical damage coverage and some property damage (liability or uninsured motorist) coverages. Every make and/or model of cars has a history, so you are placed into a similar rating group for this item. If a car has more theft or vandalism history or high repair costs due to body construction, it will carry a higher premium.
To make sure that the insurance companies are rating people properly they must file their rates with each state’s insurance department. In this report, they must include how they determined their rates, which car insurance rating factors were used, and the base rates they will use for every location. Quite simply, an insurance rate considers all these factors and the insurance company assigns you a rating factor by which they multiply the base rate for each type of coverage. For example, a given insurance group may be priced at $200 per year for someone in a 35-40 year old age group, but if you are 16-21 your rating factor may be 1.5, you will be charged $300 ($200 X 1.5). This is simple approach, but quite simply each item above may have a different factor for each group and all of these factors are factored against the base rate to get your premium. All insurance companies use the same basic criteria in determining rates; some weigh the various factors differently and this is the complexity of rating factors and rating systems. The only way to get the best coverage for the least money is to shop with independent insurance agents like CarInsurance.com. Luckily, internet sites like CarInsurance.com make it easy to shop and compare rates of multiple companies at one site.
Minggu, 16 Januari 2011
How to Save on Auto Insurance
Follow these guidelines for car insurance savings:
First, always be honest with the insurance agent or agency. You never want to be caught in a lie, whether in an application online, in person or by telephone. You can request an immediate cancellation of your policy. Cancellations are not conducive and when seeking motor insurance with other insurance companies. And certainly not help to save on car insurance.
Second, implement and compare the prices of cars. The quickest way is to receive contributions online. Apply to a few insurance agencies and see how they qualify and what you qualify. Always follow up your application with a phone call every insurance agency you applied to – ensuring it is the right coverage you are looking for and that covers the way they need to.
Next never lend your car to someone who is not on your insurance policy. Too many people are in this situation and see their insurance rates increase. Too familiar when the person who gave the car had an accident and was not willing to pay. By contract, the car is insured drivers who are covered in a private car – not the people who are not covered by your insurance policy.
Fourth, avoid long journeys to and from work. Longer distances add to their premiums. , If you can, come to work. (I know this is easier said than done).
In addition, buying a car good prices – that you like, but at the same time is practical for their needs. Other words, do not try to buy a car that is in the "wanted list" for car thieves and that rank high in car accidents. Always check with your insurance agent and find out how its rows of cars.
Sixth, avoid accidents and speed inputs. Believe me, you can do. There are insured drivers who have never been in a car wreck and have never had any violation of the car – not even a parking ticket or a ticket without a seat belt. His driving record points can be obtained from a special database available to all insurance agencies.
Then, avoid filling too many claims. If you complain, the limit if you can help. There is no right, even better. When you fill too many claims for each 'Ding' you get in your car, you 'tagged' – highly qualified – for insurance companies.
Eighth, install security devices in the car. Most or all insurance companies for and with its decision to protect your vehicle from auto theft.
Ninth, see if any of the organizations that belong to or work to qualify for a group discount. Some companies have affiliations with insurance companies in particular and participants may receive discounted rates instantly. Talk with your discount savings insurance agency car insurance. Example: Teachers have a lower risk of accidents than workers in most other fields of race and given other employment related discounts.
Last but not least, some insurance companies allow you to perform a safety course online (you have to pay a minimum amount), but the savings you get in the car insurance exceeds the amount pays for the course online security.
First, always be honest with the insurance agent or agency. You never want to be caught in a lie, whether in an application online, in person or by telephone. You can request an immediate cancellation of your policy. Cancellations are not conducive and when seeking motor insurance with other insurance companies. And certainly not help to save on car insurance.
Second, implement and compare the prices of cars. The quickest way is to receive contributions online. Apply to a few insurance agencies and see how they qualify and what you qualify. Always follow up your application with a phone call every insurance agency you applied to – ensuring it is the right coverage you are looking for and that covers the way they need to.
Next never lend your car to someone who is not on your insurance policy. Too many people are in this situation and see their insurance rates increase. Too familiar when the person who gave the car had an accident and was not willing to pay. By contract, the car is insured drivers who are covered in a private car – not the people who are not covered by your insurance policy.
Fourth, avoid long journeys to and from work. Longer distances add to their premiums. , If you can, come to work. (I know this is easier said than done).
In addition, buying a car good prices – that you like, but at the same time is practical for their needs. Other words, do not try to buy a car that is in the "wanted list" for car thieves and that rank high in car accidents. Always check with your insurance agent and find out how its rows of cars.
Sixth, avoid accidents and speed inputs. Believe me, you can do. There are insured drivers who have never been in a car wreck and have never had any violation of the car – not even a parking ticket or a ticket without a seat belt. His driving record points can be obtained from a special database available to all insurance agencies.
Then, avoid filling too many claims. If you complain, the limit if you can help. There is no right, even better. When you fill too many claims for each 'Ding' you get in your car, you 'tagged' – highly qualified – for insurance companies.
Eighth, install security devices in the car. Most or all insurance companies for and with its decision to protect your vehicle from auto theft.
Ninth, see if any of the organizations that belong to or work to qualify for a group discount. Some companies have affiliations with insurance companies in particular and participants may receive discounted rates instantly. Talk with your discount savings insurance agency car insurance. Example: Teachers have a lower risk of accidents than workers in most other fields of race and given other employment related discounts.
Last but not least, some insurance companies allow you to perform a safety course online (you have to pay a minimum amount), but the savings you get in the car insurance exceeds the amount pays for the course online security.
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